A game in which a better strategy exists but players

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A game in which a better strategy exists but players choose worse outcome is called Prisoner’s Dilemma (PD). In a PD game both players have dominant strategy.
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16 Types of Nash Equilibria We can categorize games based on strategies firms use and the number of Nash equilibria. Firms can use either Pure Strategy , in which players employ one strategy with certainty . Or firms can use mixed strategy in which choice is made according to probability it assigns to different strategies.
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17 Types of Nash Equilibria In the Pure Strategy games, when at least one player has a dominant strategy, the outcome is a unique (i.e., only one) Nash equilibrium. For example in advertising game, both players have dominant strategies. Whereas in the modified advertising game, only Firm B has a dominant strategy. In both the games, there is a unique Nash equilibrium.
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18 Multiple Nash Equilibria: Product Choice game Crispy Sweet Crispy Sweet Firm 2 -5, -5 10, 10 -5, -5 10, 10
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19 Multiple Nash Equilibria If Firm 2 introduces Crispy (C), Firm 1’s best action/response is Sweet (S). Similarly, if Firm 1 introduces “Crispy,” it is best for Firm 2 to choose “Sweet.” So there are two (multiple) Nash equilibrium in this game in Pure Strategies. This is because no player has a dominant strategy in this product-choice co-ordination game.
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